Gold Vs. the S&P 500

In 1980, gold was going for more than 7.5 times the S&P 500. To hit that level today, gold would need to be close to $10,000 per ounce.

By July 1999, the ratio had fallen to less than 0.18 which in today’s terms would place gold at $230 per ounce. The ratio then rebounded to 1.37 in March 2009. Since then, gold and the S&P 500 have followed each fairly closely. Since last May, gold has held the upper hand but now the two are starting to get much closer.

Is a crossing in the works?

Posted by on January 21st, 2011 at 12:24 pm

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.